Centre's announcement following BJP win at Thiruvananthapuram Corporation; over ₹260 Crores released as grants to local bodies

NEW DELHI: The central government has released Rs 260.20 crore as the first tranche of grants for the financial year 2025-26 to local bodies in Kerala. This is the first instalment of untied grants as per the recommendations of the 15th Finance Commission. The amount is for 14 district panchayats, 152 block panchayats and 941 village panchayats.

The Ministry of Panchayati Raj and the Union Ministry of Jal Shakti (Drinking Water and Sanitation) jointly recommend financial assistance to rural local bodies and Panchayati Raj Institutions. The Finance Ministry will then release the funds in two instalments during the financial year.

The Basic (Untied) Grants can be used for local purposes under the 29 subjects included in the Eleventh Schedule of the Constitution, but cannot be used for salaries and institutional expenses.